Loch 'N' Green Village Section Two Homeowners Association, Inc. v. Sharon Murtaugh, Connie J. Ragsdale, Pamela L. Johnston, Eileen Greene, and Russell Greene

CourtCourt of Appeals of Texas
DecidedMay 30, 2013
Docket02-12-00094-CV
StatusPublished

This text of Loch 'N' Green Village Section Two Homeowners Association, Inc. v. Sharon Murtaugh, Connie J. Ragsdale, Pamela L. Johnston, Eileen Greene, and Russell Greene (Loch 'N' Green Village Section Two Homeowners Association, Inc. v. Sharon Murtaugh, Connie J. Ragsdale, Pamela L. Johnston, Eileen Greene, and Russell Greene) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Loch 'N' Green Village Section Two Homeowners Association, Inc. v. Sharon Murtaugh, Connie J. Ragsdale, Pamela L. Johnston, Eileen Greene, and Russell Greene, (Tex. Ct. App. 2013).

Opinion

COURT OF APPEALS SECOND DISTRICT OF TEXAS FORT WORTH

NO. 02-12-00094-CV

LOCH ‘N’ GREEN VILLAGE APPELLANT SECTION TWO HOMEOWNERS ASSOCIATION, INC.

V.

SHARON MURTAUGH, CONNIE J. APPELLEES RAGSDALE, PAMELA L. JOHNSTON, EILEEN GREENE, AND RUSSELL GREENE

----------

FROM THE 153RD DISTRICT COURT OF TARRANT COUNTY

MEMORANDUM OPINION 1

Appellant Loch ‘n’ Green Village Section Two Homeowners Association,

Inc. (appellant or the Homeowners Association) appeals the trial court’s order

granting the motion for summary judgment filed by appellees Sharon Murtaugh,

1 See Tex. R. App. P. 47.4. Connie J. Ragsdale, Pamela L. Johnston, Eileen Greene, and Russell Greene.

We affirm.

Background Facts

The City of Arlington’s (the City’s) Lake Interlochen Subdivision, which a

real estate company began developing in 1972, has two water reservoirs. The

Lake Interlochen Homeowners Association (Interlochen), representing a

collection of property owners in the subdivision, eventually became responsible

for operating the reservoirs.

In 1980, Coventry Southwest, Inc. (Coventry) purchased almost fifty acres

of land near one of the reservoirs. In 1982, to settle litigation that was pending in

a Tarrant County district court concerning Interlochen’s protest of Coventry’s

application to “enlarge the 136 acre foot reservoir by impounding an additional 15

acre-foot of water on [Coventry’s] tract,” Coventry entered into an agreement with

Interlochen. Through the agreement, Coventry joined with Interlochen on the

permit for the reservoir. Also, among other stipulations, Coventry agreed to

set up a homeowners association which may be called, and will hereinafter be referred to as, Loch-N-Green Homeowners’ Association, and that said association will share in the future costs of operating and maintaining the upstream dam impounding the 136 acre-foot reservoir. . . . This covenant by Coventry shall run with the land.

Coventry also agreed that the homeowners association would make a “pro rata

contribution for the cost of maintaining the supply reservoir.” Finally, Coventry

agreed to “require initial purchasers that [became] members of Loch-N-Green

2 Homeowners Association to execute an affidavit acknowledging that operation of

the reservoir is controlled by [Interlochen] . . . and that the obligations . . . of

Coventry, its assigns and successors in title, [ran] with the land.”

In 1983, Coventry entered into an agreement with the City in which

Coventry assented that the City was not responsible for developing, constructing,

operating, or maintaining improvements in Coventry’s planned subdivision and

that Coventry would “impose by covenants running with the land . . . the

obligation upon each lot abutting and benefitted by such improvements the joint

obligation of maintaining and operating such improvements.” Coventry’s

agreement with the City did not expressly address the creation of a homeowners

association.

Coventry filed a plat of “Loch ‘n’ Green Village” in 1983, but no evidence

exists that Coventry developed the land there or ever created a homeowners

association. Instead, in 1985, Loch ‘n’ Green Joint Venture (the Joint Venture),

which had acquired the land, filed a revised plat of the planned subdivision. The

revised plat dedicated the subdivision’s streets to the public’s use. The Joint

Venture entered into an agreement with the City in 1986 in which the Joint

Venture assented, like Coventry had, that the city would not be responsible for

developing, constructing, operating, or maintaining the improvements in the

subdivision. The Joint Venture, however, apparently also did not develop the

property. In 1986, the Joint Venture sold six lots of the property, lots 27 through

3 32 of Block 2, to Terra-One Partnership. The Joint Venture later filed for

bankruptcy.

Some lots that had previously been owned by the Joint Venture were

eventually acquired by JMH Investments, Inc. (JMH), and in 1993, that company

filed a “DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS”

(the Original Declaration). The Original Declaration mandated that all of the land

in the “Addition,” which expressly did not include lots 27 through 32 of Block 2,

was to be “held, sold and conveyed subject to” the conditions in the Original

Declaration. The Original Declaration included building, architecture,

landscaping, and use restrictions; created the Homeowners Association for only

“the owners of the lots in the Addition”; 2 required the owner of each lot to pay

annual assessments to be used for a “maintenance fund exclusively for the use

and benefit of the Addition”; and stated that the Original Declaration was binding

on “every person acquiring title to any lot in the Addition.” The Original

Declaration also stated,

Pursuant to that certain Settlement Agreement . . . between [Interlochen] . . . and [Coventry] . . . the [Homeowners Association] . . . shall share with [Interlochen] the reasonable and necessary operating and maintenance costs of the upstream dam impounding the 136 acre-foot reservoir . . . .

2 The Homeowners Association is, according to an affidavit filed in the trial court, a “separate and distinct entity and is not the successor of any other entity.” The affidavit recites that the Homeowners Association was incorporated in August 1993 as a Texas nonprofit corporation.

4 Through letters sent by JMH’s agent in August 1993 concerning the proposed

privatization of streets within the Loch ‘n’ Green Section Two subdivision, JMH

expressed to owners of lots 29 and 31 that they would not be compelled to join

the Homeowners Association but could do so if they desired.

JMH later amended the Declaration (the First Amended Declaration) “to

extend the coverage of the scheme of development restrictions . . . to certain

additional lots which were not owned by [JMH] on the date of the Original

Declaration.” But like the Original Declaration, the First Amended Declaration did

not apply to lots 27 through 32 of Block 2 of Loch ‘n’ Green Village Section Two.

The First Amended Declaration stated that the maintenance fund from

homeowners’ assessments could be used only for common areas and for “the

use and benefit of lots which [were] covered by” the First Amended Declaration.

An amendment to the amended declaration (the Second Amended Declaration)

again clearly expressed that its terms did not apply to lots 27 through 32 of

Block 2.

The record indicates that by 1993, when JMH filed the Original

Declaration, each of the lots now owned by appellees had already been

conveyed to private individuals. Appellant Sharon Murtaugh acquired lot 27 of

Loch ‘n’ Green Village Section Two in 1999. Murtaugh’s warranty deed

expressed that the conveyance to her was “subject to any and all

restrictions, . . . covenants and conditions, if any,” relating to the lot. Appellee

Pamela L. Johnston purchased lot 30 in 2003 “subject to any and all . . .

5 restrictions . . . affecting said property that [were] filed for record” in Tarrant

County. Appellee Connie J. Ragsdale bought lot 28 in October 2006.

Ragsdale’s deed stated that the conveyance was “made subject to all . . .

restrictions, easements, exceptions, conditions, and covenants, if any, applicable

to and enforceable against” her property. Appellees Eileen Greene and Russell

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Loch 'N' Green Village Section Two Homeowners Association, Inc. v. Sharon Murtaugh, Connie J. Ragsdale, Pamela L. Johnston, Eileen Greene, and Russell Greene, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loch-n-green-village-section-two-homeowners-association-inc-v-sharon-texapp-2013.